Construction projects implemented in nine major districts of the country totaled $749.8 million in the first half of2013 showing a slight decrease of 2.2 % compared to the same period in 2012, when they reached $ 766.8 million, but despite this decrease, the residential segment witnessed an increase of 38.7% on investment when compared to the first six months of last year.
From January to June 2013, the residential projects total investment was $ 438.2 million, representing an increase compared to the same period of 2012, according to building permits granted by the Construction Works and the Municipality of Panama and Municipal Engineering offices remaining districts.
Note that in the first six months of 2012, the non-residential construction accounted for 58 % of investments, adding $451 million when the residential closed with $315 million. Despite of the fact that the number of construction projects was primarily residential: of the 5,490 permits issued in the first half of 2012, some 5,310 were for residential construction.
In current year we can see a change in this ratio: since January to June investment in residential projects accounted for 71 % of total construction to total $438 million, up from $311 million were invested in nonresidential projects.
According to the report issued by the Comptroller General of the Republic, the result is due to an increase in the number of projects during this period, which enlisted 5,859 permits issued for new construction and repairs, of which 5,676 were for housing.
Among most vivid districts are San Miguelito, Arraiján and La Chorrera, in the province of Panama , David in Chiriqui, Chitre in Herrera, city of Colon in the province of Colon, Santiago de Veraguas and Aguadulce in Cocle Province.
The list is headed by the district of Panama with the record of 1,555 permits issued for new projects that reached a total investment of $ 536.4 million between buildings , additions and repairs , of which $ 315.4 correspond to residential projects.
According to the president of the Panamanian Chamber of Construction ( CAPAC), Henry Asencio, the first half of the year has been a regular for the sector, which has kept its pace despite the dropped intensity of the mega projects being conducted by the government. And the residential segment is of prime interest and also has had good movement.
He noted that there is a strong trend toward building condos in the range of $120,000, which is the top of economy class real estate. Also a lot of projects are priced between 60.000 and 100.000 per unit. However, social projects with the price $40.000 or lower for those with low incomes and poor economical situation had a decrease because of the high land prices and increasing at all times costs for building materials.
To this we must add the increased costs of inspections by the Fire Department and the National Civil Protection System, which could have had effect on the final price per unit.
The president of the National Housing Council (Convivienda) , Miguel De Janon, noticed that “although the economy has slowed a bit, the first half of the year has been good for construction, especially in the residential segment “. "We are optimistic that the year will end with good results for the sector," said the union leader.
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